m 2 - Ch 5 to 7 Help Save & Exercise 6-7 (Algo) Performance obligations; customer option for additional goods or services; prepayment (LO6-3, 6-4, 6-5] A New York City daily newspaper called "Manhattan Today" charges an annual subscription fee of $486 Customers prepay their subscriptions and receive 250 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $460 for an annual subscription that also would include a coupon to receive a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage The list price of a carriage ride is $450 per hour The company estimates that approximately 30% of the coupons will be redeemed Required: 1. How much revenue should Manhattan Today recognize upon receipt of the $460 subscription price? 2. How many performance obligations exist in this contract? 3. Prepare the journal entry to recognize sale of 13 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 1. How much revenue should Manhattan Today recognize upon receipt of the $460 subscription price 2. How many performance obligations exist in this contract? 1 Revenue 2. Number of performance obligations Prey Next > Help Save BE View transaction list Journal entry worksheet Record the sale of 13 new subscriptions. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal